International Development News
Development News Edition

UPDATE 1-Sterling jumps after EU court aide says Britain can drop Brexit

Sterling jumped on Tuesday after a senior European Union legal adviser said Britain could unilaterally withdraw its Brexit notice, easing concern among investors about Britain crashing out of the bloc in March without a deal.

The advice from a European Court of Justice advocate general is non-binding but the prospect of a route out of the Brexit process cheered the market, even as Prime Minister Theresa May pressed ahead with plans for a parliamentary debate on her divorce deal with the EU.

The pound, which on Monday fell to a one-month low of $1.2697, spiked to a day's high of $1.2840 and traded up 0.7 percent on the day versus a broadly weaker dollar. Against the euro it rose 0.2 percent to a day's high of 88.9 pence.

The growing chance of averting Brexit altogether -- potentially via a second referendum -- has led some investors to start pricing out the prospect of a damaging "no deal" departure from the EU, analysts said, lifting sterling.

"If the European Court decides to support this opinion... it will reinforce the hand of those who want the UK parliament to overturn the referendum result and stay in the EU," said CMC Markets' chief analyst Michael Hewson.

"That may well be positive for the pound in the short term but could be poisonous for politics in the UK," he added.

May has secured an agreement with EU leaders that will see Britain leave the bloc in March next year with continued close trade ties, but the odds look stacked against her getting it through a deeply divided British parliament.

May's spokesman said on Tuesday that the British government is not going to revoke its notice to quit the European Union.

Opposition Labour finance spokesman John McDonnell said last week a second Brexit referendum "might be an option we seize upon".

The comments raised expectations the Labour party could back putting Brexit to a second vote though it is unclear what impact such a prospect would have on sterling.

"A lot of dire developments would probably have to take place first before a second referendum happens," said analysts at MUFG.

Recent positioning data suggests hedge funds have started to unwind large short positions on sterling as hopes grow that Britain may manage to negotiate an orderly Brexit.

But growing domestic opposition to May's Brexit arrangement has continued to pressure sterling, pulling it down 3 percent from a Nov. 7 high of $1.3176. (Reporting by Tom Finn; Editing by Andrew Heavens and Hugh Lawson)

(This story has not been edited by Devdiscourse staff and is auto-generated from a syndicated feed.)



How music can help expectant mothers during pregnancy

Music provides pleasant ambience for all but its more important for expectant mothers as besides ensuring pleasant environment for them it also directly and indirectly influences the unborn babies. There are various scientific findings to c...

EdTech: A technical approach to flexible and cost-effective education

Its hight time for the world to go for innovative approaches like e-learning over traditional learning methods that need physical infrastructure, long-term planning, and huge investment. ...

Our school campaigns are our strongest ally: Joaquin Antuna, founder of Peace and Cooperation

Joaquin Antuna is the founder of Peace and Cooperation, a Spanish NGO which was nominated as peace messenger by the United Nations in 1986. Antuna is of very firm opinion that in order to have an incisive impact on the community we live in,...

'No escape from telephones', this 1953 prediction actually comes true

In 1953, a telephone company chief predicted that therell be no escape from telephones in the future....


Latest News

Online Tickets go live for the Indian hockey team's Pro League home games

Hockey India on Thursday announced that tickets for the countrys home matches in the much-anticipated FIH Pro League next year are available online now. It will be the first time that India will be participating in the FIH Hockey Pro-League...

Dexter Fletcher to direct Dracula henchman story for Universal

Rocketman director Dexter Fletcher is set to tackle a Universal film about classic monster Draculas henchman R M Renfield. According to Deadline, the film is based around the character who was a prominent figure in author Bram Stokers cult ...

NCP leaders meet ahead of joint meeting with Cong

A key meeting of NCP leaders is underway to discuss the modalities of an alliance with the Shiv Sena for government formation in Maharashtra, party sources said.In a separate meeting, the Congress Working Committee CWC reviewed the politica...

UPDATE 6-Democratic 2020 candidates unite on impeachment but differ on policy in polite debate

Democratic White House contenders united in supporting the impeachment inquiry against Republican President Donald Trump at a debate on Wednesday that featured differences on policy details but few of the bitter attacks on one another that ...

Give Feedback